What are the benefits of AABY?

It offers insurance cover of ₹30,000 on natural death, ₹75,000 on accidental death, and partial disability benefits along with a scholarship of ₹100 per child for two children.

What are the benefits of Pradhan Mantri Bima Yojana?

It provides affordable life insurance of ₹2 lakh on death due to any reason and ₹1 lakh for accidental disability, with an annual premium of just ₹330.

Who is eligible for Pradhan Mantri Bima Sakhi Yojana in English?

Women members of Self Help Groups (SHGs) under the Deendayal Antyodaya Yojana–NRLM are eligible to work as “Bima Sakhi” to spread awareness and assist in implementing social security insurance schemes.

What is the aim of Aam Aadmi Bima Yojana?

To provide social security and financial support to rural landless households by offering life and disability insurance coverage to the earning member of the family.

What is the mission of the Bima?

The mission is to provide inclusive, affordable, and accessible insurance coverage to poor and vulnerable sections of society, ensuring financial security against risks of death, accident, and disability.

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Aam Aadmi Bima Yojana: Affordable Life Insurance & Financial Security

Komal Bajpai

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Updated: 18-08-2025 at 5:30 PM

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Aam Aadmi Bima Yojana is one of the most important government schemes being implemented to cater to the social security benefits of workers in the unorganised sector. With this, it charges low premiums, provides comprehensive coverage, and guarantees that families of insured persons have their financial needs met during hard times.

Read the article to learn more about the Aam Admi Yojana, ranging from its meaning, the Aam Aadmi Bima Yojana launched on, and objectives to eligibility and the process of applying, and the Aam Aadmi Bima Yojana status check.

Overview

The table below showcases the key highlights of the Aam Aadmi Bima Yojana scheme:-

Scheme Name	Aam Aadmi Bima Yojana
Aam Aadmi Bima Yojana launched on	2007
Administered by	Life Insurance Corporation of India (LIC)
Target Beneficiaries	Unorganised sector workers
Age Limit	18 to 59 years
Total Premium	₹200 per person per annum
Central Government Contribution	₹100
State Government Contribution	₹30
Beneficiary Contribution	₹70

What Is Aam Aadmi Bima Yojana?

The Aam Aadmi Bima Yojana scheme is a life insurance scheme targeted at low-paid workers in the unorganised sector and the Aam Aadmi Bima Yojana launched on the year 2007. It protects against death and disability and operates under the LIC of India. The premium is very cheap because the government subsidises it for everyone.

What Is Covered Under AABY?

There is coverage in the event of natural death, accidents, and disabilities under Aam Admi Yojana. Below is the coverage offered under different conditions:

Coverage Type	Sum Assured
Natural Death	₹30,000
Accidental Death	₹75,000
Partial Disability	₹37,500
Total Disability	₹75,000
Scholarship	₹100/month per child (up to 2 children in grades 9-12)

What Is Not Covered Under Aam Aadmi Yojana?

The government scheme does not cover death due to suicide, drug overdose, or injuries caused by risky activities like adventure sports. Natural deaths are covered, but not deaths due to pre-existing diseases.

Some of the situations that are not included in AABY are as follows; These include:

Hospitalisation expenses
Suicide
Death due to substance abuse
Dying or getting crippled (disabled) while indulging in life-threatening adventures or war-like conditions
Psychiatric disorders or involvement in illicit practices

How To Claim Aam Aadmi Bima Yojana?

To claim insurance for the Aam Aadmi Bima Yojana, the insured's nominee must submit a claim form along with relevant documents like death or disability certificates to the nearest LIC branch or authorised office within 30 days of the incident. The claim is processed, and the amount is directly transferred to the nominee’s bank account.

Features

The Aam Aadmi Yojana provides life insurance coverage for rural and economically weaker sections of society. It offers accident insurance and scholarships for two children per family up to class 12.

Affordable Premiums: The government subsidises the cost, making it accessible to everyone.
Financial Assistance: Offers coverage in case of death or disability.
Support for Women: Special benefits for female-headed households.
Scholarship Benefit: Children of the insured receive a scholarship if the insured dies.

What Are The Benefits Of Aam Aadmi Bima Yojana?

Beneficiaries of Aam Aadmi Bima Yojana receive ₹30,000 for natural death, ₹75,000 for accidental death and ₹1.5 lakhs for permanent disability. A scholarship of ₹600 per child is also provided to eligible children.

Financial Assistance: Supplements the income of the family of the insured in case of his/her death or total and permanent disability.
Subsidised Premiums: Puts a favourable and affordable price of life insurance policies within the reach of every client.
Covers Natural Calamities: Insurance widens to events such as flooding and the occurrence of an earthquake.
Scholarship Benefit: Offers Rs. 100 per month for up to two children who are between 9th and 12th standard of education.

What Is The Eligibility Criteria For The Aam Aadmi Bima Yojana?

The government scheme is available to individuals aged 18 to 59 years, belonging to below-poverty-line families or families with marginal incomes involved in specified occupations.

The following are the eligibility criteria for the Aam Aadmi Bima Yojana:-

Age: Between 18 and 59 years.
Income: The applicants’ annual income should not be more than Rs. 1,00,000.
Occupation: It is required that applicants be engaged in unorganised sectors such as agriculture as an employer, fishery, construction and the rest.
Social Security: No other schemes of social security such as NPS or ESI should apply to it.

Exclusions

People above 59 years, individuals with stable and high incomes, and those involved in non-specified occupations are excluded from the scheme. AABY does not cover individuals who are:

Working in the organised sectors.
Income taxpayers.
Above 59 years of age.
They are already benefiting from other insurance schemes which are in existence.
Not the primary breadwinner.

Occupation Included In The Yojana

The Aam Aadmi Bima scheme covers occupations like agricultural labourers, fishermen, artisans, beedi workers, and individuals engaged in similar unorganised sectors.

Sector	Occupations
Agriculture & Rural	Primary Milk Producers, Sheep Breeders, Rural Poor, Rural Landless Households, Agriculturists, Toddy Tappers, Plantation Workers, Forest Workers, Salt Growers
Handicrafts & Weaving	Handloom Weavers, Khadi Weavers, Sericulture, Handicraft Artisans, Manufacture of Wood Products, Manufacture of Leather Products
Construction & Labor	Brick Kiln Workers, Construction Workers, Carpenters, Hamals, Safai Karamcharis
Transport & Self-employed	Rickshaw Pullers/Auto Drivers, Transport Drivers Association, Overseas Indian Workers, Self-employed Persons
Manufacturing & Processing	Beedi Workers, Fishermen, Coconut Processors, Manufacture of Paper Products, Rubber & Coal Products, Chemical Products (e.g., candle making), Food Processing (e.g., Khandsari/Sugar), Mineral Products (e.g., earthen toys manufacture), Fire Crackers’ Workers
Textile & Leather	Textile Workers, Leather & Tannery Workers, Powerloom Workers, Papad Workers (SEWA attached), Lady Tailors
Healthcare & Education	Anganwadi Teachers, Physically Handicapped Workers, Women Associated with Self-Help Groups, Hilly Area Women
Miscellaneous	Tendu Leaf Collectors, Cobblers, Karmacharis, Safai Karamcharis, Printing Workers

How To Do Online And Offline Registration?

For Online and offline registration of Aam Aadmi Bima Yojana, visit the nearest Life Insurance Corporation (LIC) office or Common Service Centre (CSC), fill out the application form, and submit the required documents like proof of identity and occupation.

Here are the steps to apply for the Aam Aadmi Bima Yojana online:

Step 1:
Access the Aam Aadmi Bima Yojana official website – LIC: Use the link to the official website of LIC for Aam Aadmi Bima Yojana.

Step 2:
Go to the ‘Aam Aadmi Bima Yojana Apply Online’ page: Fill in the application section, especially for AABY registration.

Step 3:
They also insist on getting the application form filled out: Fill all the necessary information in the online form appropriately.

Step 4:
Upload necessary documents: Copy and upload the necessary documents, including the scanned results of the Aadhaar card and proof of income.

Step 5:
Apply: To finalise the registration, please press the ‘Submit’ button and complete the registration process through the Aam Aadmi Bima Yojana official website. One can also view the Aam Aadmi Bima Yojana status check through the official site.

To Register Offline For The AABY Scheme, Follow These Steps:

Step 1:
Collect the application form from the nearest nodal agency or LIC office.

Step 2:
Fill out the form and attach the required documents.

Step 3:
Submit the form to your nearest LIC office.
.
Step 4:
Nominate a beneficiary, which is essential for claiming benefits.

What Is The Application Process For The Aam Aadmi Bima Yojana?

Applicants can apply through their respective Gram Panchayats, Block Offices, or CSCs by filling out the form and providing necessary documentation like income and occupation proofs.

Step 1: Get the application form from the nearest AABY centre or insurance agent.

Step 2: Please complete the given information and enclose the following documents.

Step 3: Take the form, complete it, and submit the same at the nearest LIC office.

Step 4: After validation, the policy certificate will be released.

Documents Required

Essential documents include an Aadhaar card, an income certificate, proof of occupation, and a bank account passbook for claim settlements.

Aadhaar Card.
Birth certificate or the School Leaving certificate.
Photo Identification (Voter ID, Passport) as well as Proof of Residence (Electricity bills, Ration cards, etc.).
Bank account details.
Income Certificate.
Occupation proof.

Steps To Claim Benefits

In the event of a claim for Aam Aadmi Bima Yojana, beneficiaries must submit the LIC Aam Aadmi Bima Yojana claim form, death or disability certificate, insurance policy, and identification proof to the LIC office. The claim process typically takes up to 30 days for settlement.

Step 1: The LIC Aam Aadmi Bima Yojana claim form has to be submitted along with relevant papers, like a death or disability certificate.

Step 2: Any attempt must be made in writing within the next thirty days following the occurrence of the said event.

Step 3: Once the details of the claim have been confirmed, LIC will process the same.

Step 4: The amount will be directly credited to the account of the nominee.

Conclusion

In conclusion, Aam Aadmi Bima Yojana helps provide social security to the workers of the unorganised sector of India. This is because the scheme offers fairly low premiums for a wide range of coverage to make sure the financial burden of the insured workers’ families is well catered for during the worst times. In this emerald scheme, qualifying employees must subscribe to the system to guarantee the future of their family.

Stay updated with Jaagruk Bharat to get the latest information on government schemes and more, and reach out to us via our community page if you have any questions or want to share your thoughts.

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